Apple applied this concept to perfection when they introduced the Apple Watch.

The most inexpensive version of the watch (the Apple Watch Sport) was priced at $349 – a considerable sum when compared to your basic Timex wrist wear. However, it’s sort of a bargain when you consider the 18-karat rose gold Apple Watch Edition, priced up to $17,000.

And here’s the thing…

As reported by Wired magazine, there’s no difference between the base-level Apple Watch Sport and the Apple Watch Edition in terms of what they can actually do – and for the watch to actually work, it has to be paired with an iPhone (a whole other expense).

Interesting, isn’t it?

From a logical perspective, you might wonder why anyone would pay $17,000 for an Apple Watch when a comparable version is available at a fraction of that price…

When you watch this video, you’ll see how easy it is to get people to spend more money by simply helping them recognize value. All you have to do is properly price your offerings.

I took a cue from the above clip and helped a client re-price his packages for immigration services. Here’s how he previously priced his offerings:

• $335 for a basic consultation
• $1,665 for a DIY visa program
• $3,885+ for a done-for-you visa program
• $12,000+ for a done-for-you business visa program

So, which offer looks like the best deal to you?

Tough to tell, isn’t it?

Since he targets individuals with his marketing, I first suggested removing the business option from his price sheet. After all, visas for businesses require a different marketing message – it’s a separate audience.

In addition, the starting business price instantly seems expensive because you naturally compare it to the individual offerings.

Now, with the business option gone, we’re left with three prices: $335, $1,665, and $3,885.

The client wants to attract more people to his done-for-you visa program at $3,885, so I recommended increasing the price for his DIY program.

If you double that fee (to $3,330), the done-for-you option suddenly looks more appealing.

After all, you can do all the immigration paperwork yourself (and deal with the hassle and hope you complete it correctly) for $3,330… Or you can have an attorney – who handles the immigration process every day and knows the system – complete the task for a mere $500 more.

Which option would you choose?

And let’s not forget…

If someone still wants the DIY option, my client is now getting twice the price he used to.

He’s winning either way.

And the fact is, when you apply the decoy effect to your pricing, you’ll win too.